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Uber Market Plan for Japan

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by

Ashley Victoria

on 1 July 2014

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Transcript of Uber Market Plan for Japan

Uber Market Plan for Japan

Major Problems
Geographic Region &
Relative Consumer Buying Habits
Tokyo, Japan
Competition: Taxis
Empire of Japan
Daiwa Jidosha
Nihon Kotsu
Teito Motor Transportation
Kokusai Motorcars
Competition: Halio
British company created by taxi drivers for taxi drivers
Objective: Connect passengers with taxis

Market Size
Government is highly involved
Action Plan
“Being local and speaking with a local voice is important when you’re doing transportation and means you know what’s going on for the city”
Features
Strictly regulated by government
Sobriety check before & after shift
Drivers have stickers on licenses recognizing excellence
Pricing
Government regulated
pricing as previously
outlined
Promotions, Advertising, and Distribution Channels
No promotions
Advertisting for taxi service in taxi publications, on and in vehicles, and on company website
Features
Connects passengers to taxi drivers
Smartphone App interface like Uber
Shows driver information
Allows for handicapp accessibility request
Credit card or cash payments accepted
Pricing Strategy
Typically a surcharge of $1.50 to $2.50 to customers and no commission from driver
In Tokyo, there is NO surcharge - the app is completely free
Promotions & Advertising
Resistant Stakeholders
Taxi Companies
Independent Taxis
Taxi Lobbyists
Local Government

Potential Issues
Antiquated and at many times biased laws
Legislative barriers to entry
Limits on service licenses
Required training for taxi drivers versus Uber drivers
Limits on service vehicles in some cities
Product Feature Preferences
Pricing Strategy
Agencies that may help
The Tokyo Taxi center
The Institute of Tokyo Taxi Association
Tokyo Hire-Taxi Association
Ministry of Transport
Tourism’s Bureau of Road Transportation
American Chamber of Commerce Japan

Regulations to Follow
Strict Driver Training Standards
Follow Driver Registration Procedures
Evaluation System for corporate taxi operators


Product
Standard: Uber Black, Uber SUV, Uber Lux
Local: Uber Ramp
Geocentic price structure
15% markup from taxis (5% less of a markup than other cities)
Avoid surge pricing for first 6 months then evaluate the market
Utilize "first ride free" promotions, but no coupons
Use market skimming to maintain status appeal


Place
Standard: Metropolitan city
Local: concentrate vehicles in districts depending on the time of day. For example, have a higher concentration of vehicles in Marunochi (corporate/financial district) during the day and a higher concentration in Roppongi (night life district) at night
Based on Jim Harvey's speech structures
Trialability
Minimum commitment
Completely free until service request is fulfilled
Incentives for first time users
No destination commitment
Uber - The Product
"Everyone's Private Driver"
Compatibility
Smartphones
Credit Cards
Mobile Commerce
Service fee for transport service
Relative Advantage
• UberX • Uber Taxi • Uber Black • Uber SUV • Uber Lux •
Observability
As a service, visiblity is low.
As a technological innovation, visibiltiy is high.
As an icon for quality, visibilty is high.
As a transportation infrastructure game changer, visibility is high.
Complexity
Perceived as easy to use
Perceived as useful
Perceived good quality for the price
promo video
Download the free app
Click to request cab
See estimated price
Know who the driver is, the type of car, the plate number, and where they are
Ensured it's the shortest route
No money exchange
Quality assurance
The driver knows exacty where passengers are without needed an address
18,800 owner-drivers
Taxi experience is already luxurious
In Tokyo, Japan
Taxis usage:
20% In a hurry
17% To transport things
15% Rainy weather
14% Fatigue
12% Nothing else available
11% Drinking
*Data from Tokyo Taxi Association
About 1,080,000 Taxi Passengers Daily
“Japanese taxis are like heavenly chariots with perfectly polished exteriors, lace-lined interiors, and white-gloved drivers, they’re your own limousine starting at just ¥710.”
Timothy Hornyak, Lonely Planet
lace
well maintained
camera
gloves & proper attire
Navigation
mandatory
credit card machines
*Tokyo Taxi Association
Advertising
giveaways
Discounts
Street Promo & Events
Price
Advertising & Promotions
Standard motto: everyone's personal driver

Standard: Smartphone app
Pattern Advertising
Traditional Advertising at
transportation hubs
Develop product culture
based around convience of
personal drivers
Personal Selling
Nonprice sales promotions
include launch party, business
partnerships, special deliveries,
and celebrity rides
Call a phone number
Often times long wait times
Complicated pricing
Unknown drivers and cars
Some have navigation
Some only take cash
Potential poor customer service
Uber
Taxi
Reasons for Resistance
Benefit from the limited available options
More work for taxi with less options
Need to make enough money to pay for expensive licensing
Protecting their own investments
Local governments don't want to change laws
Mostly males in 50s and males & females in 50s -60s
Taxis are 6.7% of daily transportation
Company Overview
Payments
Cash, Credit or Swipe card
Advertising taxi/travel packages to tourists on websites, YouTube, and in tourist publications
tourist package ad
promo video
About 1,080,000 Taxi Passengers Daily
Mostly used by males in 50s and males & females in 50s -60s
By 2050 1/2 of Japan's Population with be 50+
Taxis are 6.7% of daily transportation
Utilize taxi owner-drivers and if possible, taxi companies willing to work with Uber
Local: change language to Hiragana
Full transcript